💰 Cognition Raises $500M at $9.8B Valuation — Double Its March Price Tag

[etfs]

AI startup Cognition, the new owner of code editor Windsurf, just closed a funding round valuing it at $9.8B, according to WSJ. That’s double what insiders say it was worth back in March 2025.

Key details:

Raised ~$500M, led by Peter Thiel’s Founders Fund.

Delaware filings show preferred shares priced at $55.2, up from $23.1 in the last round.

Sources in July already hinted at a $300M raise near a $10B valuation, with Founders Fund and Khosla Ventures both in play.

Last round (March 2025): “hundreds of millions” raised at a ~$4B valuation (Bloomberg).

Who they are:

Founded in 2023, Cognition is the team behind Devin, an AI tool for programmers.

In July 2025, Cognition bought Windsurf (AI code editor).

Post-acquisition, The Information reported Cognition gave Windsurf staff a tough choice: leave with severance or stay under a brutal 80-hour workweek.

Why it matters

Cognition has become one of the fastest-growing AI unicorns — tripling valuation in under six months.

Its aggressive buy-or-build strategy shows the AI coding tools space is consolidating fast.

But the 80-hour week ultimatum raises questions: sustainable innovation or a pressure cooker waiting to crack?

Do you think Cognition’s hyper-growth and work-hard culture will set the standard for AI startups — or scare off top talent just when they need it most?

[Maxwell]

That valuation jump is insane , tripling in half a year! But pushing an 80-hour grind culture could burn out the very talent they’re paying billions for

[rafihasan]

Cognition is playing Silicon Valley on hard mode: raise big, acquire fast, push harder. Question is, can they actually sustain innovation under that kind of pressure?

[Nahiar806]

The Windsurf deal shows how serious consolidation is getting in AI coding tools. But culture matters — will top engineers really stick around for a pressure cooker?